The Central Government has given private banks the freedom to exploit customers:-Kumari Selja

:-The Middle-class customers are facing the highest economic and mental exploitation:- Kumari Selja

:-The Private Banks are engaged in looting customers under the government’s protection:- Kumari Selja

:-The Private Banks are charging additional fees apart from interest under the guise of personal loans:-Kumari Selja

Chandigarh / 11th, January.

The General Secretary of the All India Congress Committee, former Union Minister, and Sirsa MP Kumari Selja said that the Central Government has allowed private banks to exploit customers, with middle-class customers being subjected to the highest level of economic and mental exploitation. Initially, these banks attract customers with tempting offers, but later, the exploitation begins. Repaying personal loans becomes a difficult task as banks impose additional charges besides interest, which are not disclosed to customers in advance. The government should take steps in the public interest to curb such practices and protect customers from exploitation.

In a statement released to the media, Kumari Selja said that whenever an individual, especially from the middle class, needs money, their first thought is often about personal loans. Although banks offer personal loans at fixed interest rates, there are numerous hidden charges associated with them. Along with the annual interest rate, personal loans require borrowers to pay processing fees and GST. Kumari Selja said out that many banks charge a 5% processing fee and a 5% repayment charge on personal loans. The processing fee is non-refundable, meaning if the loan is cancelled, the fee will not be refunded. The processing fee also includes an 18% GST. Additionally, if customers repay the loan before the lock-in period, they are charged a pre-payment fee of up to 5% along with an 18% GST on the outstanding balance. Kumari Selja said that if a customer applies for a personal loan, and it gets approved or disbursed, but the customer later cancels it, the banks still impose cancellation charges. Some banks charge ₹3,000 along with an 18% GST for such cancellations. If the customer opts for repayment swapping after taking the personal loan, banks levy additional charges. For each repayment mode swapping, banks charge ₹500 along with an 18% GST. Kumari Selja has said that banks financially exploit customers extensively. For example, if duplicate documents related to personal loans are required, such as loan statements, NOCs, or re-issuance to credit information companies, customers must pay charges ranging from ₹50 to ₹500, along with separate GST. Such charges also apply to education loans. Kumari Selja urged the Central Government to focus on the interests of the people, particularly the middle class, as they are the most exploited and affected section of society.

Photo:-Kumari Selja.